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Cryptocurrencies fell down in value, but are in demand. Coinbase Card became available on Google Pay. Bakkt was able to attract $300 million investment.
A difficult week for the global economy negatively affected the Bitcoin exchange rate: on March 13, the cryptocurrency No. 1 fell to the level of $ 3,800. However, then it managed to go up in price to $ 5,300. Nevertheless, experts note a range of interesting signs that are clearly positive. For instance, buy bitcoin search inquiry was requested more than 100,000 times in Google on the day of the maximum decrease. By this indicator, it was ahead of gold.
Google Trends data shows that cryptocurrencies are more in demand among potential buyers than traditional financial assets. Although the crisis affected the digital market much more than the gold market, investors began to carefully study bitcoin as a backup tool. It is noteworthy that cryptocurrencies turned out to be more stable than energy sources.
Michael Novogratz, Galaxy Digital CEO, is confident that the crisis will slow the growth of the digital financial asset market for at least a year. Lack of finances forces institutional and private investors getting rid of long-term investments. Individuals and companies are actively seeking for liquidity, and therefore they have to sell. However, the expert is sure that at the first signs of economic recovery, the demand for cryptocurrencies will increase sharply.
Meanwhile, Tim Draper, venture billionaire, thinks that it is cryptocurrencies that will save the world. He is confident that the financial system of the future will be based on them, whereas decentralization and artificial intelligence will become the basis of the global financial system. At the same time, Draper did not give up his forecast. He still believes that bitcoin price will reach the level of $ 250,000 in 2023.
Such figures seem fantastic, but there are serious reasons to suspect certain logic in them. In case the crisis gets out of control, the dollar’s risk of losing its status of the world reserve currency will increase. In this case, the economy will need some independent equivalent of cost estimation. Gold and cryptocurrencies may turn out to be a real international reserve asset. The outlook seems somewhat bleak, but not for Bitcoin owners.
In February 2020, the Coinbase cryptocurrency exchange was able to obtain the Visa Principal Member status and now it has the right to issue plastic Coinbase Cards. Now the platform has gone even further: it has provided Android device users with an opportunity to add this card to their Google Pay wallet. Thus, it became possible to pay with cryptocurrency for purchases in ordinary stores. Similar service can also be used by iOS supporters.
During the crisis, many investors began showing increased interest in digital financial assets. For example, Circle, which issued USD Coin (USDC) stablecoin, reported a record demand for its coins. The peak value of 597 million coins was observed on March 16. It is noteworthy that this was after the meltdown, namely, at the time of the cryptocurrency market correction.
For the time being, residents of a limited list of countries have the opportunity to pay with cryptocurrency. It includes the Unites Kingdom, Belgium, Ireland and another 13 states. In the near future, the exchange promises to significantly increase this list.
Meanwhile, it became possible for the United States residents to buy bitcoin and Ethereum via the Opera browser. Developing Wyre startup allows purchasing these assets for a total of up to $ 250 through Apple Pay and mobile versions of Opera on iOS and Android. The cost of acquiring cryptocurrency will be USD 0.30 excluding the transaction fee of 2.9%. The conversion time will take no more than 30 seconds.
It is expected that in the near future a destock version of the Web 3.0 browser will be launched where it will be possible to buy TRON in addition to bitcoin and Ethereum.
Bakkt platform belonging to the operator of New York Intercontinental Exchange was able to successfully pass the B series investment round and receive $300 million of investments. Such large companies as Microsoft, Pantera Capital, PayU and others are among investors. Now Bakkt has a stuff of 350 employers.
In the winter of 2020, Bakkt acquired Bridge2 Solutions, a loyalty program development company, which allowed it establishing cooperation with major US financial institutions. In total, more than 4,500 companies in the country are among its customers.
It is expected that in the summer of 2020, Bakkt payment application will be available to users. The purchase of Bridge2 Solutions will help the company offer its customers to stimulate the employees and clients through a wide variety of digital assets. According to Mike Blandina, Bakkt CEO, it can be points, miles or bonuses in cryptocurrencies or other assets.
It also became known that testing of Bakkt Cash option in the application of Starbucks chain has begun. Since the companies are strategic partners, the idea of buying coffee for bitcoins has been around since the platform launching. However, it is too early to talk about the large-scale implementation of the payment system. Today, only the “early access” system is in effect. There is no doubt that in the near future such a purchase will be available to everyone.
It is noteworthy that now Kelly Lynn Loeffler, the former Bakkt CEO, is a member of Senate Committee on supervision over the Commodity Futures Trading Commission (CFTC), while her husband, Jeffrey Craig Sprecher, is the CEO of Intercontinental Exchange (ICE). In December 2019, Loeffler received the post of senator from the state of Georgia. Some experts are confident that she will actively lobby the cryptocurrency industry in the upper echelons of the US Government.